Class Action Over Bread Prices | Recent Settlement Affects Q2 Results, George Weston Company Says

(Toronto) George Weston says a recent settlement the company reached in class actions over bread price-fixing had a $253 million impact on its second-quarter net income.


The company, which owns a majority stake in grocer Loblaw, said its net income was $667 million for the period ended June 15. That compares with net income of $782 million a year earlier.

Its net profit attributable to shareholders totaled 410 million, compared to 508 million a year earlier.

Revenue for the quarter was about $14 billion, compared with $13.8 billion a year earlier.

Most of that revenue, more than $13 billion, came from Loblaw, whose retail sales have been rising recently, according to George Weston. Its real estate investment trust, Choice Properties, has also seen revenue rise because of higher rental rates and acquisitions and developments.

The bread price-fixing class actions alleged that defendants, including George Weston and Loblaw, conspired to fix the price of packaged bread in Canada. Loblaw agreed to a $252.5 million settlement.


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